Page 93 - RusRPTApr20

9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
Russia’s total output of crude oil and condensate was virtually flat m/m in February (+0.04% m/m) at 11,242kbbbl/d, according to CDU TEK.
Rosneft (excl. Bashneft) and Bashneft cut their production 0.6% m/m and 0.5% m/m, respectively, while Gazprom Neft, Surgutneftegas and Tatneft increased crude and condensate output 2.9% m/m, 0.1% m/m and 0.1% m/m, respectively. Lukoil’s crude output was flat m/m (-0.04%).
Russian gas production declined 5.6% y/y to 2.08bcm/d. Gazprom’s production was down 8.2% y/y, while Novatek cut its daily output 1.7% y/y (including the share of JVs).
Among Russian oil producers, Rosneft’s gas production was 2.1% y/y lower in February, while Lukoil and Surgutneftegas added 5.7% and 1.0% of gas output y/y.
Gazprom’s natural gas exports to Europe (excl. CIS) declined 7.7% y/y in February, according to Interfax.
“The reduction in total oil and condensate production relative to the October 2018 levels (the reference point for the OPEC+ agreement) was 129kbbl/d, compared with the targeted decline of 298kbbl/d,” VTB Capital (VTBC) said in a note. “However, we note that the OPEC+ deal excludes condensate, the production data for, which is not yet available. Otherwise, we think Russia likely performed in compliance with the OPEC+ agreement. Although we do not have detailed data for February, we note that as of the end of January.”
Rosneft’s production at its largest asset, Yuganskneftegaz, had been on the decline for three months, with January production down 1% MoM. We also note that Gazprom Neft’s production dynamics were negative in August- December 2019, as production at Sibneft’s Khantos and Noyabrskneftegaz declined steadily. However, in January the company’s production started recovering (mainly the result of production at Sibneft Khantos and Noyabrskneftegaz rebounding).
Gazprom’s production and exports to Europe remain pressured by a combination of warm weather and the high utilisation of underground storage facilities in Europe (currently stands at 60.5%, versus 41.8% a year ago). Novatek also cut its production on the back of y/y declines in production at Nortgas (-11.3%), Terneftegas (-0.4%) and Novatek’s own fields (-2.0%).
93 RUSSIA Country Report April 2020 www.intellinews.com